New Delhi, Sept. 28 -- The Indian market is now significantly less reliant on foreign portfolio inflows, a mutual fund industry veteran said, citing the market's resilience to bad news and the rise of local institutional investors.

Domestic investors' participation has accelerated since the covid-19 pandemic, said Harshad Patwardhan, chief investment officer at Union Asset Management Co. "In the 2013 taper tantrum, the Nifty fell 11% and the rupee slid 17% three months after the event.

Fast forward to today, after three months when Donald Trump announced reciprocal tariffs in April 2025, the Nifty was up 10% and the Indian currency depreciated only 0.3%. Even when a 50% import duty was imposed on India recently, Nifty is still up 7% and...